MARKET INFRASTRUCTURE

Franklin Templeton launches European ETFs with Euroclear

The launch of the ETFs follows the successful issuance of its ETF products, in partnership with Euroclear, in the US and Canada.

By Joe Parsons joe.parsons@strategic-i.com September 08, 2017 10:15 AM GMT

California-based asset manager Franklin Templeton has launched four smart-beta European exchange traded funds (ETFs) through Euroclear’s issuance structure.

The ETFs will be listed and traded through the London Stock Exchange and settle directly with Euroclear's international central securities depository (ICSD), Euroclear Bank.

The launch of the ETFs follows the successful issuance of its ETF products, in partnership with Euroclear, in the US last year and in Canada in May this year.

Franklin Templeton has accumulated $750 million in its US ETFs and around $125 million in its Canadian products.

“We welcome this collaboration with Franklin Templeton and are pleased to be part of their first ETF issuance in Europe,” said Stephan Pouyat, global head of capital markets and fund services, Euroclear.

Earlier this year, Chinese asset manager GC International collaborated with Euroclear to issue its first international ETF, which trakes FTSE China A index equities.

The Belgium-based CSD has invested in its fund market infrastructure service, FundsPlace, by adding automated straight-through processing in settlement and asset servicing for ETFs and other fund types, and plans to expand its collateral management service to include ETFs.